Why did the markets dump? I thought 0.25 cut was expectations?
Discussion
Powell rose inflation expectations and the Dot Plots pointed at higher Fed Funds Rate in 2025 as originally priced in. The overall market which is highly liquidity addicted now needs to adjust for only 2 rate cuts. This will disappear sooner than they hope
Less stimmy cuts in the future. Got it thx. Makes sense the market didn’t like that. More inflation and higher rates, is this your base case?